University Strategic Management: A Businessman′s View

Abstract

The basic concepts of strategic management from
the business world are of great value to university
administrators in responding to serious threats in
their environment. Although there are strong
similarities between business and university
strategic management, the differences make
university strategic management, and particularly
the university chief executive′s role in it, much more
difficult for the following reasons: (1) the profit
motive in business in not present in universities;
(2) faculty tenure restricts universities′ freedom to
reallocate resources; (3) faculty governance limits
the authority of university administrators; (4)
universities are more political than business; (5)
state university systems impose many constraints
on strategic management. Despite these difficulties
in implementing these business concepts in
universities, strategic management is important for
the success or even survival of a university.